Market Update - November 19, 2013

Corn and wheat futures are little changed. Corn may be supported by some profit-taking after the past week’s significant sell-off. Wheat futures rallied overnight, but prices fell when pit trading opened at 930 am CT. Wheat futures continue to respect chart support.

Soybean futures are lower with the January contract dropping below Friday’s low and the new-crop November 2014 only cents above chart support of $11.40. Today pressure is coming from mainly soybean meal futures but also soybean oil. There may be some fund selling on concerns of the huge South American crop potential and a possible slowdown in Chinese shipments (China rejected a corn shipment due to GMO content), the latter being less likely.

Unfortunately, cattle futures are taking another step down in price following Monday’s losses. Again, it appears the funds long the LC futures are nervous about declining boxed beef values while at the same time hog prices are slipping. Note that LC and FC have room to fall on the charts before support kicks in.